Andreas Berger, CEO of Swiss Re Group, one of the world’s largest reinsurance companies, said that although some large reinsurance buyers decided to take on more risks during the January 1 renewal season, global reinsurer Swiss Re’s share of the market has not decreased because buyers still need leading reinsurance partners.
Alongside the release of its FY2025 results this morning, Swiss Re also announced results for renewals on January 1, 2026, announcing a premium volume change of -0.3% and a net price change of -4.6%, driven by a 4.6% increase in loss assumptions, slightly offset by a 0.3% nominal price increase.
About 55% of the company’s treaty business was renewed in January, and of the $12.5 billion in renewals, $600 million was canceled or unscheduled, meaning 95%, or $11.8 billion, was renewed. If you include the 2%, or $300 million change at renewal, and the $0.9 billion in new business, total premiums at renewal totaled $12.4 billion.
Divided by business scope, Swiss Re reduced its natural insurance premiums by 7% to gross premiums of US$2.4 billion, while property premiums shrank by 6% to US$1.9 billion, offsetting a 3% increase in professional insurance premiums and a 4% increase in casualty insurance premiums, reaching US$2.8 billion and US$5.3 billion respectively.
Swiss Re explained this morning that the decline in natural capital reflected lower nominal prices in a more competitive market, but added that importantly, terms and structures were broadly stable.
In a recent conference call with the media, CEO Berger was asked about the drivers of the soft environment, leading the executive to emphasize the importance of cycle management and Swiss Re’s outstanding market position.
“First of all, let me say, there is no one cycle. So it’s very important because every business area is in a different market cycle. There may be some business areas that are related to each other, but overall they are not. That’s what I was talking about earlier about business areas like credit/guarantee, it’s not related to the traditional property and casualty business areas,” Berger said.
He continued: “For renewals, we’re seeing demand, but we’re also seeing more competition on the supply side. So there’s capital in the market, plenty of capital, and that’s reflected in more intense price competition. The good news is that the structure, the terms and conditions and the add-on points remain largely unchanged and that’s what we need to watch and we need to maintain that discipline in the market.
“We’re seeing large, sophisticated reinsurance buyers who are taking on more risk, which means taking premiums out of the market. But the good news is they want leading reinsurance partners, so our share of the market is not decreasing.”
The CEO went on to note that Swiss Re plays an active role at the intersection of liabilities and assets and capital markets, underscoring the company’s leading role in building the market for insurance-linked securities (ILS).
“So, this is normal cycle management. Rising interest rates are part of the cycle. Then, because of high interest rates, investors find the market attractive and capital will come in, which will put more pressure on pricing and increase competition. Here, technical excellence, technical underwriting, how do you assess risk? How do you price risk? Very important. And you always have to think about rate adequacy and the composition of the portfolio and protecting the balance sheet,” he said.
Looking ahead to 2026 renewals, Berger said Swiss Re expects a similar situation to 2026 1.1, adding that, as always, the situation could change if large losses occur.
“We’re now going into April renewals; they’re primarily driven by Asia or Japan. Again, the Japanese market is a very different market than the U.S. market or the European market. And then you get into the June/July renewals in the U.S., which obviously everyone is waiting for. So, let’s see. I think demand is higher. So, that’s always a good sign. There’s demand for the product, we just have to be disciplined, keep rates appropriate and stay structurally disciplined,” he said. Berger.
